Question

The opportunity cost of a choice is:

(A) the difference between the benefits and costs of the choice.
(B) sometimes positive or negative.
(C) the value of the opportunities lost.
(D) the net value of the opportunities gained.

Answer 1

The correct answers are letters "A", "B", "C", and "D".

Step-by-step explanation:

Opportunity Cost is what a person sacrifices when they choose one option over another. It is calculated subtracting the return of the chosen option minus the return of the option left behind. It is imperative to consider the period in which the calculation is made because it can determine if the decision taken was the best or not.

In some cases, the opportunity cost can be positive or negative. Opportunity cost can also be defined as the value of the opportunities forgone or the net value (option forgone minus option dismissed) of the opportunities obtained.